Figure 6-14 The following information is available for Department C for the month of June:
Materials are added at the beginning of the process. Round unit costs to two decimal places.
Refer to Figure 6-14. The cost of goods transferred out using the weighted average method is

Question

Figure 6-14 The following information is available for Department C for the month of June:
 Materials are added at the beginning of the process. Round unit costs to two decimal places.
Refer to Figure 6-14. The cost of goods transferred out using the weighted average method is

Quizplus · Accepted Answer

To calculate the cost of goods transferred out using the weighted average method, we need to calculate the average cost per equivalent unit first. 
Total cost of beginning work in process + cost added during the month = $150,000 + $975,000 = $1,125,000 
Total equivalent units for materials = 20,000 + (2,000 x 60%) = 21,200 
Total cost per equivalent unit = $1,125,000 / 21,200 = $53.08 
Cost of goods transferred out = 4,800 x $53.08 = $273,240. Therefore, the correct answer is C.

Figure 6-14 the Following Information Is Available for Department C